Traders work on the floor of the New York Stock Exchange (NYSE) on Sept. 29, 2026 in New York City.

The S&P 500 moved lower on Thursday as investors watched the moves in Treasury yields and faced pressure from elevated oil prices.

The broad market index dipped 0.3%, while the Nasdaq Composite was down 0.5%. The Dow Jones Industrial Average traded just below the flatline.

The benchmark 10-year Treasury note yield was roughly little changed at 5.277%, as was the 30-year yield at 5.646%. The 2-year Treasury yield gained more than 3 basis points to 4.802%. Those moves came after Federal Reserve Governor Christopher Waller said more hikes may be needed to curb inflation.

Oil prices spiked also after President Donald Trump said he doesn't want to make a deal with Iran to end the war, while the U.S. is reportedly preparing for "massive bombing" in the Middle East. Brent crude jumped 4% to around $104 per barrel. West Texas Intermediate futures , meanwhile, advanced 4% to around $92.

Key areas of the market sensitive to higher borrowing costs such as banks and technology were under pressure yet again. Intel and Marvell Technology shares were each down more than 2%, while Bank of America and Citigroup shed around 1%.

Yields and oil have stoked volatility in equities of late, as concern grows that higher energy prices will keep inflation elevated and force the Federal Reserve to further raise rates.

Many investors are maintaining an optimistic view of the stock market, however. They expect that the start of earnings season could give the market the fuel it needs for the next leg higher.

In the third quarter, the S&P 500 is expected post a blended earnings growth rate of roughly 30%, which would be a third straight quarter of above-25% earnings growth, according to FactSet.

Palantir Technologies was one of the few stocks trading higher on Thursday, with shares gaining 4% after the name received an upgrade at Goldman Sachs. The firm called for more upside ahead as the total addressable market could be "setting up for another step function change" as a result of the shift to sovereign AI and bespoke applications.